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Crash And Rally: What We Can Learn From Owens & Minor

Mar. 08, 2021 4:50 PM ETOwens & Minor, Inc. (OMI)BBBYQ, GME2 Comments
Daniel Schönberger profile picture
Daniel Schönberger


  • Owens & Minor was certainly an interesting stock the last few years and we can learn a lot from it.
  • An almost 95% decline in value was followed by a 1,000% rally.
  • With improving numbers for fiscal 2020 and solid guidance for fiscal 2021, Owens & Minor still seems not overvalued.

The current stock market is producing a lot of crazy stories of success and phenomenal returns and when an index – the Nasdaq-100 (QQQ) – already increased more than 100% since the March 2020 low, we should not be surprised about several stocks also increasing in the high triple-digits (sometimes even quadruple digits).

Owens & Minor (NYSE:OMI) as well as Bed Bath & Beyond (BBBY) are stocks that increased more than 1,000% since the previous lows. And especially GameStop (GME) became extremely famous and dominated the financial press for several days in January as the stock increased about 11,000% between April 2020 and the peak in January 2021.

(Source: Owens & Minor Investor Presentation)

In the following article, I will take a closer look at Owens & Minor and the rollercoaster ride the stock took in the last few years. The article will be split in three parts covering three phases of the stock’s history. The first phase are the years before 2016, when the stock reached its peak, the second phase are the years between 2016 and 2019 in which the stock almost declined to zero and the third phase includes the year 2020 when the stock began to recover again and actually enter an impressive rally. And every now and then we will also mention GameStop and Bed Bath & Beyond as these stocks had a similar performance as Owen & Minor.

Phase I

In the first phase, we look at the performance of the company and the stock until April 2016, when the stock peaked at around $40. In the years between 2010 and 2016, the stock more or less fluctuated between $30 and $40 and this is not surprising as the company could not really grow in these years. Revenue still increased during these years, but due to declining margins, earnings per share were stable at

This article was written by

Daniel Schönberger profile picture
Part-time investor and contributor for Seeking Alpha since 2016. My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies). My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.I also write about investing, economy and similar topics on Medium: https://medium.com/@danielschonberger

Analyst’s Disclosure: I am/we are long BBBY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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